Service ISM Declines, Beats Modestly As New Orders Drop; Respondents Complain About Obamacare

Tyler Durden's picture

It is only logical that the catalyst that has pushed the entire market higher, that would be the "all critical" Spanish Service PMI which soared very credibly a few short hours ago, would be doubled down when its US cousin came out. Sure enough, moments ago the Institute for Supply Management revealed that the February non-manufacturing ISM declined from 55.7 to 55.2, but was just above the expected 55.0, which was enough to send the headline scanners into full blown liftathon mode and the S&P to intraday highs. Ignored was that the key New Orders series actually declined from 58.3 to 54.4, yet offset by a jump in Employment from 55.3 to 57.5. What was amusing was the jump in New Export Orders to 55.5 from a contractionary reading. We can't wait to learn just whom the US is exporting its mission critical services to these days. Finally, and perhaps most relevant, was one of the healtcare related respondents who said the truth, the whole truth and nothing but the truth on the issue of Obamacare: "Healthcare reform causing continued slowdown and less investment." That's only the beginning.

The pretty chart:

The often tracked New Orders less Inventories chart:

Full Non-Mfg ISM data table:

And finally, the full respondents, which as always never share the optimism conveyed by the headline:

  • "Healthcare reform causing continued slowdown and less investment." (Health Care & Social Assistance)
  • "Sales are up slightly compared to this same period last year. This is offset by slight increases in costs for personnel benefits, fuel and other operating costs." (Public Administration)
  • "Business is good, but we find ourselves in a very competitive environment." (Construction)
  • "No change in business levels since prior month, but optimism growing that commercial and industrial construction will experience growth in 2013." (Real Estate, Rental & Leasing)
  • "Seeing increasing prices on services and goods — some not substantiated. Business outlook continues to show small signs of improvement in parts of our business, but other parts are lagging behind." (Professional, Scientific & Technical Services)
  • "There seems to be some stabilization in recent months. Business seems a little more confident, and consumers are participating once again." (Retail Trade)
  • "Business is slightly softer than this time last year, but there are a lot of projects on the horizon which gives us confidence." (Wholesale Trade)

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Spastica Rex's picture

I don't understand the hate for insurance companies. They're just trying to make a buck.

francis_sawyer's picture

As always... the 'doomer libertarians' are to blame for this...

lunaticfringe's picture

Make a buck? Every fucking commercial on TV is from insurance companies. They waste the GDP of France. I want a government backed monopoly where you are forced to buy my product. That is real pricing power.

youngman's picture

They are just advertising so attorneys don´t have too....

Theta_Burn's picture


But when opting out the fine goes to the IRS?!?! hmm.. spread that wealth citizens.

I don't understand the hate for O'Tomma either as he has forced most employers to shorten the work week to 31hrs.

Long soup kitchens

lunaticfringe's picture

Can you think of a better example of crony capitalism than buy a health insurance package from them or pay us a huge fine?

Theta_Burn's picture

Workers with shortened work weeks, that will have extra time now to seek more enjoyment from life care not about such things as crony capitalism.

I'm sure the new SHIP (supplemental health insurance premium) cards will fill the void nicely

In fact O'Tomma and Blankfine are meeting to discuss Goldman's administration of this program today....

fuu's picture

"Respondents Complain About Obamacare"


GetZeeGold's picture



20K a year for the bronze coverage.......expect some hate.

lunaticfringe's picture

People have no idea. They cannot see beyond next weeks TV programming. Wait until they get that shit upside the head- I will be there every step of the way telling them- "fuck you" you didn't care in 2009, 2010, etc when they were passing this bullshit. So shut up and pay.

Everybodys All American's picture

Obamacare is major black swan.

espirit's picture

BennieBux juicing the cycle, same as the Chinese building empty cities.

Wash, rinse, repeat... recycle.

LongSoupLine's picture

DOW fucking 14k, ES 1500+.


Good job Bernanke, you fucking rat asshole eating fucking prick.

lunaticfringe's picture

POMO occurs everyday until Feb 14. So this kind of news matters not. Eighteen days of POMO this month- there are only 20 business days. This market goes up. Has to. That shit paper has to land somewhere.

Tsar Pointless's picture

Is this the lunaticfringe from TickerForum?

NoWayJose's picture

Clearly any jump in exports would have to be Boeing dumping their supply of batteries (cheap) to all the countries that have grounded Dreamliners.

firstdivision's picture

Obamacare is the least of your worries.  CMBS finally cracking, forced inflation, and zero price discovery should be at the forefront of your concerns, but I guess if all one does is focus on the smaller problems, the bigger ones just disappear.

wonderatitall's picture

f these bitches...we won and we wont your shit. every goddamn dime you make is ours. cant live as a democrat robber baron without taking shit. i mean thats why we become nazis, i mean democrats

cliffynator's picture

But they always said it was the Republicans who were the Nazis!


Oh yeah, whether it's Coke or Pepsi, you're still drinking oversweetened sh!t.  What's the difference between the left and right anymore, besides a name?

Meatballs's picture


The system is fucked and so are the books is the only way to be.

SillySalesmanQuestion's picture

Those "projects on the horizon" are of "melt up" quality and are of "algo worthiness". Therefore, we can safely assume the market will continue its rise to infinity...that is all.

Vashta Nerada's picture

"Healthcare reform causing continued slowdown and less investment."

Idiots should have thought about that last November.

adr's picture

In 2010 we hoped for a recovery in January, in 2011 we hoped for a recovery, in 2012 we hoped for a recovery, 2013 there is the same hope.

Amazing what Bennie Bux can buy, endlss hope that business will be better. It never has to be as ling as Bennie is there to buy.

You know what the exports consisted of? Product that couldn't sell being bought by the Chinese scrap corporations.

My uncle works is steel trading. Everyone has steel to sell, brokers keep buyingit in the hopes another broker will pay just a bit more than they did. Hardly anyone is actually using the steel, but those that do have to pay more because 100 different brokers touched the stuff first.

The mills can't actually fill an order directly because they sold most of the inventory to the brokers just to get enough business to keep the lights on.

There is no real business anymore. Just "certain" people selling crap between themselves bidding the price up.

roadhazard's picture

If health care were back to just rip off business as usual this economy would be booming.

JC on a stick